Earl Codling

American Home Assurance Company, which writes property risk and casualty insurance in the Jamaican market, is awaiting a pronouncement of its long-term future following this week's near collapse of its parent, American Insurance Group (AIG).

AIG, caught in America's sub-prime mortgage crisis, was pulled back from the brink on Monday with a $40 billion bail-out package from the US central bank, the Federal Reserve.

The development has placed question marks over the future of AIG's small subsidiaries, like the one in Jamaica.

"I am awaiting directives (from the parent group) before I can say anything to the press," said American Home's general manager, Earl Codling.

Expanding insurance operations

Such directives could come as early as today. However, industry analysts say that it was likely that a company like GraceKennedy, that has recently been keen to expand its insurance operations, could seek American Home as a likely target.

"Douglas Orane (GraceKennedy's chairman and CEO) could be circling," said one analyst. "If there is a good portfolio Grace might want to acquire it, if its up for sale using his Jamaica International Insurance Company. It has done the same thing recently."

American Home entered the Jamaican general insurance market some 39 years ago underwriting risks in the property, accident and health and casualty market.

sabrina.gordon@gleanerjm.com